What are the disadvantages of expanding Medicaid?

Asked by: Prof. Tomas Reilly IV  |  Last update: May 20, 2025
Score: 4.4/5 (19 votes)

Residents of states that accept the Medicaid expansion will still face challenges in accessing needed services due to important deficiencies in essential health benefits, financial strain resulting from cost-sharing provisions targeted at Medicaid beneficiaries, and decreased access to specialists relative to those ...

What is the downside of Medicaid expansion?

KEY FINDINGS. More than 5.8 million Americans would be forced off private insurance and onto welfare if the remaining states were to expand Medicaid. This crowd-out alone would exceed $8 billion. Expansion has harmed hospitals and providers, forcing millions off private insurance and onto welfare, which pays less.

What are the negatives of Medicaid?

Disadvantages of Medicaid

One of the primary reasons for this is that Medicaid reimbursements are lower than those of commercial insurers for most procedures and treatments.

What are the biggest issues with Medicaid?

Looking ahead, there are three immediate challenges facing Medicaid for the remainder of the year: eligibility and state oversight, loss of temporary coverage due to the pandemic and lack of public support.

Who benefits the most from Medicaid expansion?

Medicaid expansion is associated with improvements in overall self-reported health among adults with low incomes. Among people with chronic disease, it is associated with improved access to care, better health outcomes and disease management, and decreased mortality.

Medicaid expansion: What closing the gap means for Georgians

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What happens if Medicaid is not expanded?

In states that fail to expand access to Medicaid there is a significant probability that millions of lower-income parents and childless adults will remain without health insurance.

What is the income limit for expanded Medicaid?

In states that have expanded Medicaid coverage: You can qualify based on your income alone. If your household income is below 133% of the federal poverty level, you qualify. (Because of the way this is calculated, it turns out to be 138% of the federal poverty level. A few states use a different income limit.)

Why do so many doctors not accept Medicaid?

One reason is that reimbursement rates for Medicaid are lower than for Medicare or commercial insurance. Another (often overlooked) factor, however, is physician's risk of payment denials and the administrative hassle they face trying to get reimbursed by Medicaid.

Why are people against Medicaid?

Conservatives view Medicaid as “just another welfare program,” this time hiding in health care clothes. Their view is that welfare programs, including Medicaid, have caused more harm than good by promoting dependency and using taxpayer dollars unwisely.

What states refused Medicaid expansion?

The Affordable Care Act, also known as Obamacare, was enacted in 2010, but 10 states have not expanded Medicaid, the federal-state program that provides health care for low-income people. They are Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin and Wyoming.

What will Medicaid not pay for?

Non-Prescription Drugs and Health Supplements

In many states, Medicaid won't pay for non-prescription drugs, such as painkillers, over-the-counter allergy medicine, and cold remedies. These medicines are available for everyone to buy and aren't covered under insurance programs.

Who uses Medicaid the most?

In 2020, Medicaid and CHIP provided coverage for nearly 55 million people of color. These programs provide essential coverage for a population that is more diverse than the broader U.S. population—especially among children, with 61 percent of Medicaid and CHIP enrollees under age 19 being children of color.

Can you have private insurance and Medicaid at the same time?

Even if you are already enrolled in your own or family's private health insurance, you may still qualify for Medicaid benefits. This is perfect for individuals who are given health insurance from their employer but are still struggling to make ends meet.

What are some disadvantages of Medicaid?

Yet for State and Federal legislators, executive officials, and the public, Medicaid is the program that costs way too much. Advocates for the poor, as well as health care providers, complain that the program has an enormous amount of unnecessary paperwork and a blizzard of byzantine rules.

Does Medicaid expansion increase taxes?

Second, it allows states to cut spending outside of Medicaid — particularly on state-funded health services for the uninsured. Finally, expansion may increase state revenues due to taxes related to Medicaid expansion or taxes on the increased economic activity it triggers.

What is the difference between Medicaid and expanded Medicaid?

Under the expansion guidelines, Medicaid eligibility is extended to adults under age 65 with incomes up to 138% of the federal poverty level/FPL (133% plus a 5% income disregard). Pre-ACA, Medicaid was generally never available to non-disabled adults under age 65 unless they had minor children.

What is the main problem with Medicaid?

But it has been difficult to launch and sustain managed care under Medicaid: Program design has been complicated and time-consuming, and administrative costs are higher, at least in the initial stages (Freund et. al., 1989; Spitz and Abramson, 1987). The Federal waiver process has been cumbersome for many States.

Why Medicare is better than Medicaid?

While Medicare is the primary payer for medical needs, Medicaid can cover costs that Medicare coverage does not. When you visit a provider that takes both Medicare and Medicaid, Medicare pays first for the cost of your care. Medicaid pays second, covering copays and other costs not covered.

Is Medicaid actually helpful?

The general finding of the studies is that having insurance (including Medicaid) is associated with better access to care and increases in the use of health-care services relative to being uninsured.

Do doctors prefer Medicaid or Medicare?

Physicians in general/family practice were less likely to accept Medicaid patients (68%) than Medicare (90%) or private insurance (91%). Only 36% of psychiatrists accepted new Medicaid patients compared to 62% who took Medicare patients and also 62% who accepted on private insurance.

Can you be too poor for Medicaid?

Eligibility for children was extended to at least 133% of the federal poverty level (FPL) in every state (most states cover children to higher income levels), and states were given the option to extend eligibility to adults with income at or below 133% of the FPL.

Do doctors get paid for Medicaid patients?

On average, Medicaid FFS physician payment rates are two-thirds of the rates Medicare pays, although this varies greatly by state and service.

How often does Medicaid check your bank account?

Medicaid agencies can check your account balances for bank accounts at any financial institution you've used in the past five years. They will check when you submit an application and on an annual basis, but checks can occur at any time.

What states haven't expanded Medicaid?

Medicaid Income Eligibility Limits for Adults in States that Have Not Implemented the Medicaid Expansion
  • Wisconsin. 100% 100%
  • Tennessee. 82% 0%
  • South Carolina. 67% 0%
  • Wyoming. 47% 0%
  • Kansas. 38% 0%
  • Georgia. 31% 0%
  • Florida. 28% 0%
  • Mississippi. 28% 0%

Will I lose my Medicaid if I get Medicare?

People who have both Medicare and full Medicaid coverage are “dually eligible.” Medicare pays first when you're a dual eligible and you get Medicare-covered services. Medicaid pays last, after Medicare and any other health insurance you have.